FxWirePro: AUD/JPY eyes 20-DMA at 88.13, bias bearish, stay short

• AUD/JPY is extending downside along the 'Bullish Cypher' formation on the daily charts.
   
• The pair is in the red for 4th successive session after failure to hold trendline breakout.
   
• Technical studies have turned bearish on intraday charts, we see scope for further downside.
   
• Stochs and RSI have rolled over from overbought levels and biased lower with further room to run.
   
• 20-DMA at 88.13 is immediate support, break below will see further downside.
   
• On the flipside, 5-DMA at 89.10 is immediate resistance ahead of trendline at 90

Support levels - 88.13 (20-DMA), 87.66 (Sept 15 low), 86.93 (38.2% Fib retracement of 81.486 to 90.304 rally)

Resistance levels - 89.10 (5-DMA), 89.68 (Sept 25 high), 90 (trendline), 90.30 (Sept 21 high)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-continues-downside-in-Bullish-Cypher-pattern-eyes-20-DMA-at-8796-good-to-short-rallies-914078) is progressing well.

Recommendation: Hold for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -74.1992 (Neutral), while Hourly JPY Spot Index was at 77.3069 (Slightly bullish) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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